Question 4 In a two-good two-consumer economy, which statement is true? Walras Law implies that the total demand for either product cannot exceed the total endowments of either good. Walras Law implies that if one market has excess supply, the other market also has an excess supply O None of the other answers are correct. Walras Law implies that if one market has an excess demand, the other market must also have an excess demand Walras Law implies that the competitive market equilibrium will be pareto efficient.

Question 4 In a two-good two-consumer economy, which statement is true? Walras Law implies that the total demand for either product cannot exceed the total endowments of either good. Walras Law implies that if one market has excess supply, the other market also has an excess supply O None of the other answers are correct. Walras Law implies that if one market has an excess demand, the other market must also have an excess demand Walras Law implies that the competitive market equilibrium will be pareto efficient.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

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